He reiterated the IEA's view that oil markets are expected to tighten in the second half of the year.

Speaking to reporters at a meeting of Group of 20 energy ministers in India, Birol said the revision of the demand forecast "is very much dependent on the growth of many countries in the second half, but mainly Chinese growth prospects".

Asked if there was a case for a further reduction in demand projections, he said, "Yes, but there is also a possibility of revising up, so we will see how the Chinese economic prospects will look like. But in any case we see a tightening in the second half of the year."